TD Bank to Trim 2 % of Jobs, Targets $650 M in Annual Savings

Toronto-Dominion Bank will eliminate roughly 2 percent of its 100,000-strong workforce after recording $163 million in second-quarter restructuring charges tied to real-estate cuts, severance, and business wind-downs. Executives say the move—part of a multi-quarter overhaul expected to cost $600 million to $700 million—should deliver about $100 million in savings this fiscal year and up to $650 million annually once complete, largely through attrition and redeployment of staff into higher-growth digital areas.

The belt-tightening comes as TD’s adjusted profit dipped to $3.6 billion on rising provisions for credit losses, yet still beat analyst estimates thanks to income from the recent sale of its Charles Schwab stake. CFO Kelvin Tran cited “macroeconomic and tariff uncertainty” for the higher loan-loss reserves, adding that consumers and businesses are pausing big decisions while they gauge trade fallout and a softening job market.

Despite the cautious outlook, TD kept core perks—defined-benefit pensions, up to seven weeks’ vacation, and cost-of-living allowances—intact for current employees. Management says specialized AI tools are also being deployed to shore up anti-money-laundering controls after last year’s US$3.1 billion fine from U.S. regulators. With five more Big Six banks yet to report, analysts will watch whether similar restructuring waves follow as tariffs, higher rates, and credit stress ripple through Canada’s financial sector.